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A very small loan program to assist seniors in their ability to pay for their homeowners insurance and property taxes, has become available in the Washington DC area. Non payment of these obligations by seniors, even after they have done a Reverse loan as in some cases has caused a foreclosure on the senior’s property in the county where they live.

The Reverse loan requires the borrower to continue to pay taxes, keep the home insured and well maintained. But sometimes this can be difficult for some seniors, so a program such as this one this is described in the following article, could be very beneficial for the homeowner.

A micro-loan program in Montgomery County near Washington, D.C., offers reverse mortgage borrowers default relief through the help of a local counseling agency, The Washington Post reported [1] this week.

Focused on assisting reverse mortgage borrowers in meeting their tax and insurance requirements, Asian American Homeownership Counseling’s (AAHC) Home Savers program [2] offers an interest-free micro-loan of up to $4,000 for eligible residents living in Montgomery County, Maryland.

AAHC is a nonprofit organization approved by the Department of Housing and Urban Development that serves homeowners as well as condominium owners.

Under the Home Savers program, the $4,000 micro-loan must be repaid within two years, though extensions could be obtained depending on a borrower’s financial situation.

Reverse mortgage borrowers are required to attend to financial education orientations, one of which regarding money management and the other focusing on “thoroughly understanding credit,” the article writes.

There is also an income restriction for Home Savers, as the program is designed for homeowners making less than Montgomery County’s median area income. For a family of four, the median income is $107,000 and $79,000 for a family of two.

AAHC intends to expand the reach of Home Savers to neighboring areas such as Prince George County and Washington, D.C. through the use of grants.”

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Dear Lorraine, You began the process for me, the process of breathing again. We were both working our display booths at the Ventura County buildings; mine with the County Fire Department and you represented your advisory company. As you descibed the highlights of a Reverse mortgage to me, it dawned on me that this could be the answer to my problem, ie., how could I pay for my wife's medical condition. After that lucky meeting, I checked out your company & found out it was doing business with FHA & apparently doing so without trouble. I checked out 3 other similar agencies, all with similar track records. So- I stayed with my original choice and didn't regret it for a single moment. So I thank you once again and strongly recommend your company to any other seekers of a compassionate and willing helper. Sincerely, Raymond A. O'Grady Newbury Park, CA
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